2014Research Journal of Economics & Business StudiesRequires access

ASSESSMENT OF THE VALUE FOR MONEY PROCUREMENT PROCESS IN LOCAL GOVERNMENT AUTHORITIES AT MOROGORO MUNICIPAL COUNCIL

Flora Gosbert Matambula, Nicholas Khatotoh Makayi

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Abstract

Value for Money Procurement Process is a fairly new management tool in Tanzania. In 2001, the Government of Tanzania realized the importance of Value for Money Procurement Process and thus enacted the Public Procurement Act (PPA) No. 21 of 2004, Public Procurement Regulations G.N No. 97 and 98 of 2005, and the Local Government Authorities (LGAs) Tender Boards (Establishment and Proceedings) Regulations G.N No 177 of 2007. Due to poor procurement performance there have been public outcries concerning procurement process, practices and outcomes. The beneficiaries do not receive the expected outcomes. This study is aimed at making an in-depth assessment on the effectiveness of the procurement function in LGAs in Tanzania with regard to the value for money procurement process.  The focus of the study was on Morogoro Municipal Council in Morogoro Region. The findings reveal that there are irregularities in the procurement process which range from non-execution or delay completion of contracted works, inadequate documentation of contracts and project records, goods paid for but partially or not delivered, procurement without competitive bidding or even approval by the Tender Board including stores not brought to ledger.

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Value for Money Procurement Process is a fairly new management tool in Tanzania. In 2001, the Government of Tanzania realized the importance of Value for Money Procurement Process and thus enacted the Public Procurement Act (PPA) No. 21 of 2004, Public Procurement Regulations G.N No. 97 and 98 of 2005, and the Local Government Authorities (LGAs) Tender Boards (Establishment and Proceedings) Regulations G.N No 177 of 2007. Due to poor procurement performance there have been public outcries concerning procurement process, practices and outcomes. The beneficiaries do not receive the expected outcomes. This study is aimed at making an in-depth assessment on the effectiveness of the procurement function in LGAs in Tanzania with regard to the value for money procurement process.  The focus of the study was on Morogoro Municipal Council in Morogoro Region. The findings reveal that there are irregularities in the procurement process which range from non-execution or delay completion of contracted works, inadequate documentation of contracts and project records, goods paid for but partially or not delivered, procurement without competitive bidding or even approval by the Tender Board including stores not brought to ledger.

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Available abstract

Value for Money Procurement Process is a fairly new management tool in Tanzania. In 2001, the Government of Tanzania realized the importance of Value for Money Procurement Process and thus enacted the Public Procurement Act (PPA) No. 21 of 2004, Public Procurement Regulations G.N No. 97 and 98 of 2005, and the Local Government Authorities (LGAs) Tender Boards (Establishment and Proceedings) Regulations G.N No 177 of 2007. Due to poor procurement performance there have been public outcries concerning procurement process, practices and outcomes. The beneficiaries do not receive the expected outcomes. This study is aimed at making an in-depth assessment on the effectiveness of the procurement function in LGAs in Tanzania with regard to the value for money procurement process.  The focus of the study was on Morogoro Municipal Council in Morogoro Region. The findings reveal that there are irregularities in the procurement process which range from non-execution or delay completion of contracted works, inadequate documentation of contracts and project records, goods paid for but partially or not delivered, procurement without competitive bidding or even approval by the Tender Board including stores not brought to ledger.

Key concepts: Procurement, Bidding, Business, Chief procurement officer, Tanzania, Documentation, Local government, Government procurement

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